Featured Product

    APRA Amends Prudential Standards in Line with CPS 320 and GPS 340

    March 19, 2019

    APRA issued a letter to all general insurers, life insurers, and private health insurers proposing minor changes to the prudential framework to implement the cross-industry appointed actuary standard. APRA is making amendments to thirteen prudential standards to reflect consequential changes arising from the introduction of the new Prudential Standard CPS 320 Actuarial and Related Matters (CPS 320) and Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340). APRA intends to finalize the revised standards in April 2019. The standards will commence on July 01, 2019.

    The changes primarily replace references to revoked standards, update references from Insurance Liability Valuation Report (ILVR) to Actuarial Valuation Report (AVR), streamline clauses regarding exercises of discretion by APRA under previous prudential standards, delete outdated transitional provisions, and correct typographical errors. The following prudential standards are being amended:

    • CPS 220 on Risk Management
    • CPS 510 on Governance
    • GPS 110 on Capital Adequacy
    • GPS 112 on Capital Adequacy Measurement of Capital
    • GPS 113 on Capital Adequacy Internal Model-based Method
    • GPS 114 on Capital Adequacy Asset Risk Charge
    • GPS 115 on Capital Adequacy Insurance Risk Charge
    • GPS 116 on Capital Adequacy Insurance Concentration Risk Charge
    • GPS 118 on Capital Adequacy Operational Risk Charge
    • GPS 120 on Assets in Australia
    • GPS 310 on Audit and Related Matters
    • HPS 310 on Audit and Related Matters
    • LPS 700 on Friendly Society Benefit Funds

    For general insurers, three minor changes to GPS 116 will also be made to reflect the current definitions and expectations of APRA. The revised GPS 116:

    • Removes reinsurance premium protection and capital market structures from the definition of alternative capital and risk mitigants in paragraphs 54 and Attachment B, paragraph 13, as these types of arrangements are more aligned with traditional reinsurance
    • Clarifies expectation that the Appointed Actuary include both details of the determination of the net premium liability provision which relates to catastrophic losses (the PL offset) for the reporting year and the estimated PL offset to be utilized in the upcoming year in the AVR
    • Continues the existing requirement that the Group Actuary provide the board of a Level 2 insurance group with an opinion on the Insurance Concentration Risk Charge whenever substantial changes are made or at least annually (at Attachment B, paragraph 18)

     

    Related Links

    Keywords: Asia Pacific, Australia, Insurance, Actuary, CPS 320, GPS 340, Risk Management, Capital Adequacy, Governance, APRA

    Featured Experts
    Related Articles
    News

    BoE Clarifies Approach to Treatment of Payment Holidays on Form PL

    BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.

    August 11, 2020 WebPage Regulatory News
    News

    BoE Provides Reporting Update on Form AS and Form FV

    BoE updated the known issues document for the statistical reporting Forms AS and FV.

    August 10, 2020 WebPage Regulatory News
    News

    BIS Publishes Update on G20 TechSprint Initiative

    BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.

    August 10, 2020 WebPage Regulatory News
    News

    FED Announces Capital Requirements for Large Banks

    FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.

    August 10, 2020 WebPage Regulatory News
    News

    SRB Publishes Guidance on Implementation of Bail-In Tool

    SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.

    August 10, 2020 WebPage Regulatory News
    News

    OSFI Provides Update on Implementation of IFRS 17 in Canada

    OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.

    August 07, 2020 WebPage Regulatory News
    News

    EBA Provides Clarity on Implementation of Guidance on COVID Reporting

    EBA updated the report on the implementation of selected COVID-19 policies.

    August 07, 2020 WebPage Regulatory News
    News

    FSI Note Discusses Challenges Associated with COVID Relief Measures

    The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.

    August 06, 2020 WebPage Regulatory News
    News

    BCBS Consults on Principles for Operational Risk and Resilience

    BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.

    August 06, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5649